Iconic Stone Church fights for survival

By Ryan AlanConntributing Writer

Thursday

Aug 28, 2008 at 8:56 AMAug 28, 2008 at 9:07 AM

Seacoast music fans try to remain optimistic that Sept. 12 will not go down as the day the music died at one of its storied venues.
Home through the decades to some of the most respected performing artists in the world, The Stone Church in Newmarket, faces a foreclosure auction at 11 a.m. on that date.
If hallowed singer-songwriter Joni Mitchell were to offer an observation on the situation, she surely would make the plea that the results, figuratively speaking, will not be to "pave paradise and put up a parking lot."
The Stone Church's John Pasquale and Chris Hislop have a soundtrack of their own. It's one they call "Hope."
Even as the very real 11th Hour approaches, Hislop, venue general manager, said, "There's always hope," and Pasquale, president of Ragnarok Enterprises, Inc., the corporation that does business as The Stone Church, agrees.

"I'm keeping positive and we are making progress, but nothing concrete has developed yet," he said.
Well documented is that the venue has fallen on difficult economic times. A fund-raiser in June bought more time but, for now, there are no new bookings.
"There's no question that we have a great reputation from touring artists, etc. Unfortunately, we are still receiving offers from great national and regional touring acts that we can't act on," said Pasquale. "Agents have told us that we are one of many clubs that are struggling and they generally understand our plight and are pulling for us."
He is optimistic that the current downturn in the economy eventually will turn in a positive direction again, making operation of a venue like The Stone Church more viable. "It's just a question of when," he added.
Hislop concurs, even as he wonders aloud if the "when" will come in time for the current management group.
"There will surely be an upswing soon enough, and this will only help the success of the Stone Church if we're still around to see it happen," he said. "It's all about the money at this point, recapitalizing in order to get the bank off our shoulders so we can continue to operate."
It's reported that $750,000 was put into renovations when the business, which included a restaurant, was purchased in 2003.

It really is about the money, Pasquale agrees. "The added awareness the press has created has helped bring out some people to consider the project," he added.
He and the other owners have been talking to investor groups, hoping that the risk might be able to be spread out to preserve the entire church.
Pasquale said Sept. 12 is not an absolute deadline for the future of the venue. "We are speaking with a few different groups of potential buyers/investors/partners that could enable us to continue to do music. Some of the people may be simply real estate investors that could just acquire the building and rent to us and others," he said.
The upstairs is currently vacant and if remolded and utilized could be a source of additional revenue, he said. Others may be interested in the real estate and the music club and/or have some other business that could make use of the upstairs, he said. "I've talked to some that have businesses that could be synergistic with ours — production, studio, lesson space, expanded restaurant space, etc. — so if we could work a deal with an investor like that, the building could become fully utilized in a way that live music space downstairs works synergistically with the business upstairs."
There is irony in what The Stone Church management faces, Pasquale suggests. "On the one hand we receive many accolades for having 'revitalized, remolded and upscaled' what was a building that was in great need, and we significantly increased revenue at the Church over historical numbers, but find ourselves financially strapped," he said.
Many people wonder how that can be, he acknowledged. But the reality is that owners have a large debt load as a result of buying a property in 2003, which based on today's real estate market was overvalued, he said, "and dumping in significant dollars for remodeling it."
So even when business was better in 2005, for example, it was sill difficult to have enough revenue to make debt payment obligations, Pasquale explained.
The spike in the cost of gasoline made it worse, resulting in a more expensive night out for people who otherwise would have liked to attend a concert, he said. "During the winter, which is our busy time, people are choosing to pay the oil man to heat their home which means they don't have that extra buck for us," he added. "I'm having that same problem. The cost to heat my home has more than tripled in the past two years."
If the Stone Church closes, it will be more than just the owners who will feel the loss. "Clearly there has been economic benefit to Newmarket," Pasquale said. "The Church brings in people regularly that have never been to town before and we can't serve all the people so folks will dine elsewhere before coming," he reminded. "And people come from Boston or somewhere else and stay overnight in the region after seeing a show, so those folks are obviously spending money at other businesses."
Newmarket is not a destination town, said Pasquale, who resides there, "so we need to make the Church a destination place by offering great music."
"It's sad to say," added Hislop, "but some folks may not take the time to consider what it will be like without The Stone Church, and they will wonder what 'could have been' after it may have been too late."
Newmarket will lose a huge asset, he said. "We bring in countless visitors to our town on a weekly basis which only helps all of the other local businesses. More and more students are also moving in to town to be a part of the Church, and the scene that surrounds it, and if it goes down, who knows if they'll want to stay or if more kids from the university will move into such a small town with very few things to do."
Not to be overlooked, observers remind, is the intangible that a performance space like the Church offers to local talent seeking a showcase to express themselves. That would be another opportunity lost if the venue folds.
"Hopefully people will continue to support the local artist so that the scene can stay somewhat vibrant," said Hislop. "There is a lot of talent here on the Seacoast and people really need to take five minutes and look into it. You'll be amazed."
It's been almost 40 years and the Church has fostered countless upcoming artists, Pasquale added. "The Stone Church is an artist space and it is hard to put monetary value to it, but it would really be a loss of creativity, diversity and history (if it closed)," he said.
Hislop: "It's the single greatest meeting house in the Northeast, and perhaps the nation, and that culture oozes out of the walls. It's a place that needs to be experienced."
(More information about The Stone Church, its history and schedule can be found online at: www.thestonechurch.com)

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